An Italian firm in the energy sector energy was awarded a contract to supply services and staff training at Societé Algeriènne de Production de l’Electricité spa.
Italian firm in the energy sector
(we respect our client’s right to privacy by not mentioning their name)
Adjudicating firm:
S.P.E. Societé Algeriènne de Production de l’Electricité spa – Sonelgaz Group – Algeria
Service:
Assistance for participation in a public competition in Algeria from initial contract to successful adjudication of the competition.
Background
Algerian law states that, for all kinds of investment and the supply of all materials and equipment, state firms must publish a national and international public competition notice.
Our client had all the technical and technological skills necessary for the tender, but wasn’t familiar with Algerian bureaucracy.
After initially reading the competition notice, they were “certain” that they were extremely competitive from the supply point of view, but found it very difficult to deal with both the preliminary documentation stage and the operational stage which would follow if they were to be awarded the tender.
Knowing our experience in that market and procedures for participation in public tenders in particular, due to direct previous participation and alongside other European companies in similar competitions, the firm contacted us. We were able to offer assistance and consultancy services, from the preparation stage through to presenting the application and arriving at final successful adjudication and supply of the service.
Collecting information
Once the relationship between STI and the Italian client was formalised, we launched or assistance and consultancy services, covering the entire procedure.
First, we began procedures to obtain Algerian visas for our client’s senior managers and specialists to travel frequently to Algeria while initially preparing the offer. At the same time, we began the official procedure to obtain technical specifications from the adjudicating firm.
Study
This was followed by preparation of the offer dossier. The client prepared the technical and financial offer, while SIT provided assistance with administrative documentation and dealt with all purely bureaucratic aspects, including exchange of correspondence with the plant.
Moreover, considering that the competition involved buildings/systems works to be undertaken by local firms, STI sought to put the client in contact with a serious, reliable and well-organised firm to assist them in project implementation, ensuring a high standard of work.
The offer
At this point, STI organised a visit to the electrical plant on the day of presentation of offers. SIT was responsible for booking the hotel, as well as organising internal transport, travel permits and armed guards.
On the day of presentation of the offer, STI attended and supported the client during the meeting with the adjudicating commission. Upon opening the envelopes, the commission analysed admissibility of offers by examining point by point the documentation presented.
Adjudication
Our assistance principally consisted in analysis of the draft contract between the “client firm” and the ”adjudicating firm”, formulation of the amendments and resulting lengthy negotiations, until definitive finalisation and signature. We also provided assistance with bank documentation through preparation of performance bond text and critical analysis of the letter of credit, prior to issue.
Operations
STI assisted the Algerian sub-contracting firm and the client in all logistical aspects throughout the project, supply of skid and implementation, maintaining all necessary contacts and acting as an intermediary between the client and the adjudicating firm.
At every step of the way, STI assisted the client in preparing formal statements of advancement of works and inherent implementation of work, from the beginning of the technical guarantee period, to the statement of provisional delivery.
Therefore, also following implementation of the generator, STI supported the client to maintain relationships with senior management at the plant, in order to guarantee high service standards, continuity of assistance and planned maintenance.
At the end of the period of technical guarantee, the final and definitive step was involved preparing a formal statement of definitive delivery for both parties to sign indicating that the works had been completed to everyone’s satisfaction. STI also assisted by preparing the definitive text with both parties and then ensured that their own Italian client received complete satisfaction for all guarantees provided during the process.
Still today, our Italian client provides Societé Algeriènne de Production de l’Electricité with ordinary and extraordinary system maintenance services and they contact us for other related matters whenever necessary.
